Income Tax Return Filing in India by mytaxfiler

The Black’ Law Dictionary defines tax as “any contribution imposed by government upon individuals, for the use and service of the state, whether under the name of toll, tribute, tallage, gabel, impost, duty, custom, excise, subsidy, aid, supply, or other name.”

Income Tax Return Filing in India
The Black’ Law Dictionary defines tax as “any contribution imposed by government upon individuals,
for the use and service of the state, whether under the name of toll, tribute, tallage, gabel, impost,
duty, custom, excise, subsidy, aid, supply, or other name.” Since it is an enforced contribution and not a
voluntary payment or donation, anyone who fails to pay the amount within the stipulated time period
is subjected to punishment. Hence, the months from January to April are the most hectic months in the
life of taxpayers as they scramble to file income tax returns.
In India income tax return is filed based on the income earned from five sources namely
1. Income from Salary
It refers to remuneration in any form received by an employee from employer. Salary can be anything
such as wages, bonus, gratuity, dearness allowance, pension, advance of salary, and so on.
2. Income from House Property
It refers to the income obtained from buildings or/and lands.
3. Income from Business or Profession
As per the Income Tax Act, business refers to trade, commerce, and manufacture. Besides, any
adventure or concern with respect to trade, commerce or manufacture is also considered as business.
As for profession, it refers to any activity that requires intellectual or manual skill such as doctors,
engineers, lawyers, artists, singers, and musicians.
4. Income from Capital Gains
Capital gains refer to any profit or gains resulting from the transfer of capital assets. As per the Income
Tax Act, a capital asset is “a property of any kind held by an assessed such as real estate, equity shares,
bonds, jeweler, etc.” Transfer refers to transactions in any form such as sale, relinquishment of asset,
exchange, extinguishment of rights in an asset and so on.
5. Income from Other Sources
Those incomes that cannot be included in the above categories come under this section. This includes
income by way of dividends, income from winning races, lotteries, or games, interests on securities,
bank deposits, or loans, gifts and income from letting of furniture, machinery, building, or plant.
Though it looks easy and simple, filing of tax returns is not as easy as it sounds. There are various
sections and sub sections in the Income Tax Act, which makes tax filing a tedious process. Moreover,
any inaccuracies can land one in trouble. Hence, seeking tax-planning services from reputed consulting
companies is the best way to handle the pressure, and tension involved with tax filing.
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